This article is from the Australian Property Journal archive
THE NSW government is looking to bring more strata law reforms to state parliament, after nearly 1,000 complaints were made against strata agents over the five years to 2023.
The proposed changes target strata agents typically appointed by Owners Corporations and include:
- increasing the maximum penalties and penalty infringement notice amounts for existing agent obligations to disclose information about commissions.
- strengthening the conflict-of-interest disclosure requirements.
- banning agents from receiving a commission on insurance products when they don’t play a role in finding the best deal for residents.
- strengthening NSW Fair Trading’s enforcement and compliance powers.
This comes after NSW Fair Trading fielded more than 965 complaints about strata agents in the five years to 2023.
More than half of these complaints concern rules of conduct or budgets, levies or finances.
“These reforms are critical to supporting confidence in investing and living in strata schemes,” said Anoulack Chanthivong, minister for better regulation and fair trading.
“We want to change the perception that strata managing agents easily, and readily, take advantage of owners by significantly increasing the consequences for those who do the wrong thing.
“The new laws are designed to take immediate action to help restore confidence in living and investing in strata schemes, ensuring more people consider apartment living as a housing option.”
The introduction of higher penalties, greater transparency and new enforcement powers follow an $8.4 million investment in more resources for the Strata and Property Services Commissioner in the NSW 2024-25 Budget.
The Government will consult with key stakeholders such as the Owners Corporation Network and Strata Community Association on the draft laws and will bring the laws to parliament later in the year.
